nov 2009 financial services industry bulletin
DESCRIPTION
The Financial Services Industry Monthly Bulletin is a banking and finance law publication by Reff & Associates (correspondent law firm of Deloitte Romania) and Deloitte Tax. Each month, our specialist team of finance lawyers and tax advisors will keep you updated with the latest legal, regulatory and tax developments in the financial services industry in Romania as well as with the recent changes and trends in the international financial regulations. The areas covered by our bulletin include: Banking and non-banking financial institutions Capital markets Insurance companies Private pension fundsTRANSCRIPT
November 2009
Financial Services Industry
Monthly Bulletin
Domestic regulatory updates 3
Legal 4
1. Banking 4
2. Insurance 6
3. Private pensions 7
4. Capital Markets 8
International regulatory updates 9
Domestic regulatory proposals 11
1. Insurance 12
2. Capital Markets 12
International regulatory proposals/measures 13
Contents
Financial Services Industry Monthly Bulletin 8
Domestic
regulatory updates
4
Banking
Issuer: National Authority for Consumers
Protection (“NACP”)
NACP approved the new Norms for the
application of Law no. 289/2004 regarding the
legal regime applicable to consumer credit
facilities for individuals
Further to the repealing of the previous norms
for the application of Law no. 289/2004
regarding the legal regime applicable to
consumer credit facilities for individuals (“Law
289/2004”), NACP enacted Order no. 570/2009
for the approval of the new norms for the
application of Law 289/2004 (“the Norms”). The
order was published in the Official Gazette no.
750/04.11.2009. From the legislative
amendments regulated by the said order, we
refer to the following:
Definition of credit agreements
Law 289/2004 defines the credit agreement as
being the legal act on the basis of which the
lender grants or undertakes to grant a facility in
the form of a loan, a payment postponement or
any other similar financial facility, while the
consumer accepts such grant or undertaking.
From this perspective, the Norms stipulate that
through “similar financial facilities”, as provided
under Law 289/2004, it should be understood,
without being considered exhaustively listed,
those operations involving terms like "payment
installment, periodical payment installment or
payment stage", in case such operations are
envisaged for the purpose of granting consumer
credit facilities to individuals under the form of
payment postponements.
Drafting the consumer credit facility agreements
As regards the type and size of the font used for
drafting the credit facility agreements, the
creditors have the obligation to use the same
size for letters and figures in the entire
document for both the contractual terms and
the footer of the page or references to other
documents or specifications in the text, of any
nature.
Obligation to inform the consumers
As regards certain credit consumer facilities, the
consumers must be informed in relation to any
changes occurred with respect to the annual
interest or other costs further to the conclusion
of the respective credit facility agreements. Such
information should be made available to the
consumers no later than on the date when the
lender decides the entry into force of the internal
decision implementing the resolution of the
council/collective leadership committee
establishing the new annual interests and the
associated costs.
Early repayment
The Norms provide that in case of early
repayment the equitable reduction of the
facility’s costs should be determined by the
lender through a fair and objective analysis of
the lender’s benefits arising from the availability
of liquidities, in opposition to the disadvantages
arising from early repayments management and
capital reinvestment.
Issuer: National Bank of Romania (“NBR”)
NBR’s Circular no. 40/2009 regarding the level of
the reference interest rate applicable in
November 2009, namely 8 % per year
The above mentioned Circular was published in
the Official Gazette no. 742/02.11.2009 and
may be accessed here.
NBR’s Circular no. 41/2009 regarding the
interest rates paid on minimum mandatory
reserves
The above mentioned Circular sets forth the
interest rates paid on minimum mandatory
reserves during October 24 - November 23,
2009 as follows:
3.69% per year for minimum mandatory
reserves set up in RON;
1.37% per year for minimum mandatory
reserves set up in EUR;
0.89% per year for minimum mandatory
reserves set up in U.S.D.
Legal
Financial Services Industry Monthly Bulletin 5
Issuer: The Romanian Parliament
The Romanian Parliament approves the
Government’s ordinance for the amendment of
the legal framework regarding consumers’
protection in the execution and performance of
financial services distance agreements
Romanian Parliament enacted Law no. 334/2009
for the approval of Government’s Emergency
Ordinance no. 65/2009 for the amendment of
Government’s Emergency Ordinance no.
85/2004 regarding consumers’ protection in the
execution and performance of financial services
distance agreements. The said law was published
in the Official Gazette no. 778/13.11.2009 and
may be accessed here.
The said Circular was published in the Official
Gazette no. 770/11.11.2009 and may be
accessed here.
NBR’s Circular no. 43/2009 regarding the
amendment of the minimum mandatory reserve
rate for foreign currencies
The above mentioned Circular establishes that
during 24 November - 23 December 2009, the
minimum mandatory reserve rates for foreign
currency with a maturity date shorter than 2
years computed from the end of the observation
period and foreign currency with a maturity date
exceeding 2 years computed as well from the
end of the observation period, providing
contractual clauses regarding reimbursements,
withdrawals, early transfers, are set forth at a
level of 25%.
The said Circular was published in the Official
Gazette no. 784/17.11.2009 and may be
accessed here.
6
Insurance
Issuer: Insurance Supervision Commission
(“ISC”)
ISC amends the current regulatory framework
regarding mandatory civil liability insurance
agreements for damages caused by vehicle
accidents
ISC enacted Order no. 21/2009 for the
implementation of the Norms regarding the
mandatory civil liability insurance agreements for
damages caused by vehicle accidents.
The above mentioned Order was published in
the Official Gazette no. 812/27.11.2009 and
may be accessed here.
Financial Services Industry Monthly Bulletin 7
Private pensions
Issuer: Private Pension System Supervision
Commission (“PPSSC”)
PPSSC amends the current regulatory framework
regarding the operations consisting of monies’
collection and payment orders, which are carried
out through the bank accounts of the voluntary
pension funds
PPSSC issued Norm no. 18/2009 regarding the
operations consisting of monies’ collection and
payments orders, which are carried out through
the bank accounts of the voluntary pension
funds (“Norm 18/2009”). The main aspects set
forth by Norm 18/2009 refer to the following
aspects:
Through the collection account of the voluntary
pension funds the following operations may be
performed:
collection of the individual contributions of
the participants;
payments of the management fees.
Through the operational account of the
voluntary pension funds the following operations
may be performed:
collection of the amounts related to the net
assets of the participants from the collection
account;
short and long term investments in financial
assets;
transfer of the value of the transferred
personal assets of the participants;
payments of the values of the personal asset
of the participants in case of invalidity and
death.
Through the transfer account of the voluntary
pension funds the following operations may be
performed:
transfers of the value of the transferred
personal assets of the participants from and
in the operational account;
collection of the technical provision amount
from the bank account of the manager of
the voluntary pension fund from which the
transfer is initiated.
Norm 18/2009 was published in the Official
Gazette no. 760 on 09.11.2009 and may be
accessed here.
PPSSC amends the current regulatory framework
applicable to financial audit in case of privately
managed pension funds and their managers
PPSSC enacted Norm no. 19/2009 for the
amendment of Norm no. 11/2007 regarding the
financial auditor of privately managed pension
funds and their managers. The said Norm was
published in the Official Gazette no.
780/16.11.2009 and may be accessed here.
PPSSC amends the current regulatory framework
applicable to financial audit in case of voluntary
pension funds
PPSSC enacted Norm no. 20/2009 for the
amendment of Norm no. 8/2006 regarding the
financial auditor of voluntary pension funds. The
said Norm was published in the Official Gazette
no. 774/12.11.2009 and may be accessed here.
8
Capital Markets
Issuer: National Securities Commission (“NSC”)
NSC establishes certain interdictions applicable
to the board members of authorized entities
NSC decided through Decision no. 17 of
11.11.2009 to regulate certain interdictions to
the board members of entities authorized by
NSC, out of which we mention the interdiction
for an individual to be a board member in more
than two entities authorized by NSC. The full
text of the decision may be accessed here.
NSC extends the application of the obligations
regarding monthly assessment of the
implementation of the mechanism without pre-
validation of financial instruments and of global
accounts system for securities by the Central
Depository and the Bucharest Stock Exchange
NSC decided through Decision no. 19 of
24.11.2009 to amend the provisions of Decision
no. 1/2008 by extending the application of the
obligations regarding monthly assessment of the
implementation of the mechanism without pre-
validation of financial instruments and of global
accounts system for securities by the Central
Depository and the Bucharest Stock Exchange
until February 1, 2010. The full text of the
Decision may be accessed here.
Individual acts issued by NSC which might be of
interest for the capital markets participants
Ordinance no. 641/17.11.2009 regarding the
obligation to provide certain information to NSC.
The text may be accessed here.
Financial Services Industry Monthly Bulletin 15
International
regulatory updates
10
European Union establishes the regulatory
framework regarding credit rating agencies
The European Parliament and the Council
adopted Regulation (EC) no. 1060/2009 of
16.09. 2009 regarding credit rating agencies.
The above mentioned Regulation shall enter into
force on the 20th day following its publication in
the Official Journal of the European Union,
namely 17.11.2009 and may be accessed here.
European Union amends the regulatory
framework regarding the coordination of
legislation regarding the undertakings for
collective investment in transferable securities
The European Parliament and the Council
adopted Directive 2009/65/EC of 13 July 2009
on the coordination of laws, regulations and
administrative provisions relating to undertakings
for collective investment in transferable securities
(“UCITS”).
The said directive must be implemented in the
national law of the Member States until
30.06.2011; furthermore, the current directive
regulating UCITS, namely Directive 85/611/EEC,
shall be repealed as of 01.07.2011.
The above mentioned Directive was published in
the Official Journal of the European Union no. L
302/17.11.2009 and may be accessed here.
European Union amends the regulatory
framework regarding banks affiliated to central
institutions, own funds, large exposures,
supervisory arrangements and crisis
management
The European Parliament and the Council
enacted Directive 2009/111/EC of 16 September
2009 amending Directives 2006/48/EC,
2006/49/EC and 2007/64/EC as regards banks
affiliated to central institutions, certain own
funds items, large exposures, supervisory
arrangements, and crisis management.
The above mentioned Directive was published in
the Official Journal of the European Union no. L
302/17.11.2009 and must be implemented into
national law of the Member States until
31.10.2010. The full text of this directive may be
accessed here.
Financial Services Industry Monthly Bulletin 15
Domestic
regulatory proposals
12
Insurance
Proposal for Norms regarding the information
that insurers and insurance intermediaries should
provide to customers and clauses which should
be regulated under an insurance agreement
The above mentioned proposal may be accessed
here.
Capital Markets
Proposal for Regulation regarding the use of the
global accounts system, implementation of
mechanisms with and without pre-validation of
financial instruments, performance of lending
securities operations, the performance of related
guarantees and sale-purchase transactions
without presence
The text of the above mentioned proposal may
be accessed here.
Financial Services Industry Monthly Bulletin 15
International regulatory
proposals/measures
14
Opinion of the European Central Bank of
26.10.2009 regarding a proposal for a
regulation of the European Parliament and of
the Council in relation to a Community macro-
prudential oversight of the financial system and
establishing a European Systemic Risk Board and
a proposal for a Council decision entrusting the
European Central Bank with specific tasks
concerning the functioning of the European
Systemic Risk Board. For further details please
access here.
Declaration of the European Parliament
regarding the microcredit. For further details
please access here.
Opinion of the European Central Bank of
16.10.2009 regarding a proposal for a Directive
of the European Parliament and of the Council
on Alternative Investment Fund Managers and
for the amendment of Directive 2004/39/EC. For
further details please access here.
Financial Services Industry Monthly Bulletin 15
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